- SUNDOG’s accumulation of whales signals increasing confidence, with recent purchases totaling more than $2.5 million.
- On-chain data supported the bullish sentiment, with short positions being liquidated amid rising price momentum.
Recent whale activity in Sun dog [SUNDOG] has caught the attention of market observers, with two substantial transactions fueling speculation about the future of the token.
One whale spent $2 million to acquire a large amount of SUNDOG in one transaction, followed by another whale who bought $500,000 worth, which amounts to 1.16 million tokens.
These significant purchases could reflect increasing confidence in the asset’s potential. A deeper look at market sentiment, technical indicators and on-chain data will provide insight into whether this momentum is sustainable.
Are the whale purchases a sign of long-term confidence in SUNDOG?
The sudden accumulation of SUNDOG tokens by whales suggests a growing belief in the token’s upward trajectory. At the time of writing, the price was trading at $0.3597, up 5.01% over the past 24 hours.
This increase coincided with these large purchases, possibly indicating that whales are preparing for a significant price move.
The Bollinger Bands are showing increased volatility, with the price testing the upper band at $0.37146, suggesting that bullish momentum could continue. The lower band, at $0.33825, serves as important support.
Meanwhile, the RSI stands at 58.54, just below the overbought zone, implying that there is room for further upside before the token reaches overbought conditions.
Source: TradingView
What role does on-chain data play in this rally?
Statistics across the chain provide further insight into SUNDOG’s recent rise. The open interest (OI)-weighted funding rate stands at 0.0101%, indicating positive sentiment as traders pay a premium to hold long positions.
Source: Coinglass
Furthermore, the total liquidations chart shows that $90.8K of short positions have been wiped out, indicating that bearish traders are under pressure as the price continues to rise.
In contrast, only $927.57 of long positions have been liquidated, reinforcing the bullish sentiment driving SUNDOG’s current uptrend.
Source: Coinglass
Will the price of SUNDOG continue to rise?
SUNDOG’s recent price movements and whale accumulation suggest that the token could maintain its bullish momentum in the short term. However, investors should keep an eye on the RSI as it approaches overbought levels and watch for potential volatility in the Bollinger Bands.
While whale buying signals long-term confidence, the market’s reaction to sudden shifts in whale activity will be key to determining whether the rally continues.
The outlook remains positive for now, but traders should remain cautious and vigilant against any sudden market changes.